HISD board may delay tax hike vote

He fears that the absence of one trustee might threaten passage

Hours before the Houston school board was scheduled to vote on raising the tax rate Thursday, the fate of the proposal remained uncertain.

Anna Eastman, the board president, said Thursday that consideration of the tax rate would be postponed until Monday. Later in the day, however, she reversed that statement, saying she expected the board to vote on the matter as scheduled Thursday evening.

Superintendent Terry Grier said Wednesday that he wanted the board to postpone voting on the 4-cent increase because Manuel Rodriguez Jr., a trustee who supported the measure, expected to miss the meeting.

Rodriguez's absence could threaten passage of the 4-cent increase. Some trustees said they may support a lower amount.

Without a tax increase, Grier said, the Houston Independent School District has few options to cover a shortfall that tops $40 million for this academic year. He said the district could make deep cuts or dip into savings and risk its bond rating.

HISD must notify Harris County of its tax rate by Oct. 22, spokesman Jason Spencer said.

With the school year underway and employees under contract, massive layoffs are unlikely. Other cost-cutting measures that have been discussed include changing bus schedules, eliminating performance bonuses for teachers, ending a summer camp program and curbing field trips.

The district's financial chief, Ken Huewitt, has said that spending too much from the fund balance, or savings account, could hurt HISD's high bond rating and make it more costly to borrow money for voter-approved school construction.

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Grier's proposed budget called for a 2-cent tax increase and included $20 million to continue his controversial Apollo school reform program.

The budget approved by the board on a 6-3 vote in June increased the funding to $30 million to try to help more struggling schools. Trustees then agreed to a 2 percent raise for employees, a measure that Grier said he supported but did not formally propose. Eliminating the raises and abolishing Apollo during the school year to avoid a tax hike would be difficult.

In June, Huewitt said the $1.6 billion budget likely would require a 4-cent tax increase. The vote on the rate typically occurs in October after the county finalizes property values.

The district's proposed rate is now $1.1967 per $100 of taxable value. HISD would continue to have the lowest tax rate of school districts in Harris County, but many homeowners would see an extra increase because property values have risen.

Trustee Greg Meyers, who voted for the budget, since has said he opposes a tax increase. Describing himself as a conservative, Meyers said he thought the district should be able to balance its budget with savings and extra funding that the state has promised HISD for taking over North Forest schools.

Huewitt said most of the estimated $35 million in state funding for North Forest this year has been spent on repairing and readying the campuses.

Thanks to higher-than-expected property values, Huewitt said, the district could balance its budget by raising the tax rate by 3.42 cents. But his formal recommendation to the board is the 4-cent hike, he said.

HISD still is reeling from state budget cuts in 2011. To balance the budget the last two years, the district cut jobs, dipped into savings and used one-time federal funds.

This year, HISD is trying to fill the past shortfalls while upping spending in several areas.